Question
Which of the following ratios measures the banking
sector’s ability to absorb shocks arising from financial and economic stress?Solution
The Capital Adequacy Ratio (CAR), also called the Capital to Risk-Weighted Assets Ratio (CRAR), measures a bank’s capital in relation to its risk-weighted assets. • It reflects the buffer available with banks to absorb potential losses and continue operations in times of financial or economic stress. • Formula: • CAR=Tier I Capital + Tier II Capital / Risk Weighted Assets • Higher CAR → stronger ability of banks to withstand shocks. • RBI mandates minimum CAR levels in line with Basel norms to maintain financial stability. Thus, CAR is the key ratio that indicates the resilience of banks against risks.
Statements: Â P * R, M & N, R $ M
Conclusions:Â Â Â Â Â a) P @ MÂ Â Â Â Â Â Â Â Â Â Â Â Â b) P $ M
...Statements: B < I ≥ E > K; Z ≤ N = K
Conclusions:
I. Z < E
II. N ≤ I
III. B > N
Two statements have been given followed by two conclusions (I) and (II). Assuming the statements to be true, even if they seem to be at variance from co...
Three statements are given, followed by three conclusions numbered I, II and III. Assuming the statements to be true, even if they seem to be at varian...
Statements: D ≥ G > N < Q > T = W
Conclusions:
I. D < N
II. W = N
Statements:
Some cats are animals.
All animals are plants.
Conclusions:
I. All cats are plants.
II. Some plants are c...
Read the given statement and conclusions carefully. Assuming that the information given in the statement is true, decide which of the given conclusions ...
Statements: G ≤ E < M; H ≥ G; U < M < A
Conclusions:
I. G < A
II. U < E
III. M > H
The data breach at 19 Indian banks that have led to more than 32 lakh debit cards being blocked or recalled is a wake-up call for the banking industry. ...
Statements: V > I < Z > T = C ≥ A > G ≥ R
Conclusion
I: A < Z
II: C > R
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